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News Eliminates Credit Repair Scams and Promotes Regulatory Compliance with Its Online Escrow Platform



Credzu, LLC, a veteran-owned business, seeks to eliminate financial harm to consumers and reduce regulatory risk to companies who work with each other in the notoriously problematic “credit repair” industry.

COCOA BEACH, Fla., Aug. 26, 2021 /PRNewswire/ — Imagine a world without credit repair scams. Imagine no more. Meet After years of careful planning and a debut at the 2021 Credit Convention, a central Florida financial technology company launched a consumer protection platform to “repair” the credit repair industry.

The credit repair, tradelines, and debt settlement industries remain ripe for abuse, despite well-intentioned consumer protection laws and many good industry actors. A disinterested third-party intermediary was the missing link. But, it’s missing no more.

Credzu’s solution applies the principles of escrow to transactions involving credit repair and related services. Specifically, Credzu holds consumer funds in escrow and releases the funds to a service provider only if and when that provider performs as agreed in writing. Otherwise, Credzu releases the funds back to the consumer.

In addition, the platform promotes transparency and eliminates many forms of fraud and misunderstandings by requiring written communication and legally compliant contracts between the transacting parties.

But, that’s not the only problem Credzu solves.

Decades of consumer harm associated with credit repair services have led to regulations so severe that compliance with them may be impossible.

For example, the Telemarketing Sales Rule (TSR) prohibits credit repair companies from charging consumers until six months after services are performed. 16 C.F.R. § 310.4(a)(2). The Federal government began enforcing that TSR provision very recently and very aggressively, resulting in tens of millions of dollars in fines. In response, trade associations and credit repair companies have challenged the TSR in court. The TSR has survived every challenge.

Credzu addresses that, too.

Credit repair transactions through Credzu’s online-only platform are not subject to that 6-month rule because the TSR does not apply “to Internet based transactions.” 80 FR 77520 (Dec. 14, 2015). Even so, the entire basis of Credzu’s business model is to carry out – not to avoid – the consumer protection principles enshrined in those regulations.

“We appreciate the intent of consumer protection laws, which severely punish bad behavior after it occurs. We want to reinforce those intentions by holding funds in escrow and prevent bad behavior before it begins” says Credzu’s founder, Robert Sigman.

“Think about it. If you were a scam artist, you would never use Credzu because, with money locked in escrow, you would know that you would never get paid. Only companies confident in their abilities and serious about compliance will use Credzu. For that reason, consumers have a trusted way to secure credit-related services.”

Credzu’s business model, which reduces consumer harm and increases regulatory compliant behavior, is a crucial addition to the industry. And, it comes at no better time. Consumers, especially the underprivileged, are poised to flood the credit repair industry due to the economic fallout from COVID-19. There has never been a more pressing need for protection. As companies realize their regulatory peril and adopt Credzu, everyone stands to benefit.

Credzu encourages credit repair companies to consult the TSR issue with their attorney. Credzu encourages everyone to bookmark their site and follow their Facebook and Twitter for soon-to-be-released updates.

Credzu is excited to bring its product to the market because, in an environment full of worry, there’s one less thing to worry about: Credit repair is now safe.

Media Contact:
Ailene Rendon
(321) 384-5252



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Are Sallie Mae Student Loans Federal or Private?



When you hear the name Sallie Mae, you probably think of student loans. There’s a good reason for that; Sallie Mae has a long history, during which time it has provided both federal and private student loans.

However, as of 2014, all of Sallie Mae’s student loans are private, and its federal loans have been sold to another servicer. Here’s what to know if you have a Sallie Mae loan or are considering taking one out.

What is Sallie Mae?

Sallie Mae is a company that currently offers private student loans. But it has taken a few forms over the years.

In 1972, Congress first created the Student Loan Marketing Association (SLMA) as a private, for-profit corporation. Congress gave SLMA, commonly called “Sallie Mae,” the status of a government-sponsored enterprise (GSE) to support the company in its mission to provide stability and liquidity to the student loan market as a warehouse for student loans.

However, in 2004, the structure and purpose of the company began to change. SLMA dissolved in late December of that year, and the SLM Corporation, or “Sallie Mae,” was formed in its place as a fully private-sector company without GSE status.

In 2014, the company underwent another big adjustment when Sallie Mae split to form Navient and Sallie Mae. Navient is a federal student loan servicer that manages existing student loan accounts. Meanwhile, Sallie Mae continues to offer private student loans and other financial products to consumers. If you took out a student loan with Sallie Mae prior to 2014, there’s a chance that it was a federal student loan under the now-defunct Federal Family Education Loan Program (FFELP).

At present, Sallie Mae owns 1.4 percent of student loans in the United States. In addition to private student loans, the bank also offers credit cards, personal loans and savings accounts to its customers, many of whom are college students.

What is the difference between private and federal student loans?

When you’re seeking financing to pay for college, you’ll have a big choice to make: federal versus private student loans. Both types of loans offer some benefits and drawbacks.

Federal student loans are educational loans that come from the U.S. government. Under the William D. Ford Federal Direct Loan Program, there are four types of federal student loans available to qualified borrowers.

With federal student loans, you typically do not need a co-signer or even a credit check. The loans also come with numerous benefits, such as the ability to adjust your repayment plan based on your income. You may also be able to pause payments with a forbearance or deferment and perhaps even qualify for some level of student loan forgiveness.

On the negative side, most federal student loans feature borrowing limits, so you might need to find supplemental funding or scholarships if your educational costs exceed federal loan maximums.

Private student loans are educational loans you can access from private lenders, such as banks, credit unions and online lenders. On the plus side, private student loans often feature higher loan amounts than you can access through federal funding. And if you or your co-signer has excellent credit, you may be able to secure a competitive interest rate as well.

As for drawbacks, private student loans don’t offer the valuable benefits that federal student borrowers can enjoy. You may also face higher interest rates or have a harder time qualifying for financing if you have bad credit.

Are Sallie Mae loans better than federal student loans?

In general, federal loans are the best first choice for student borrowers. Federal student loans offer numerous benefits that private loans do not. You’ll generally want to complete the Free Application for Federal Student Aid (FAFSA) and review federal funding options before applying for any type of private student loan — Sallie Mae loans included.

However, private student loans, like those offered by Sallie Mae, do have their place. In some cases, federal student aid, grants, scholarships, work-study programs and savings might not be enough to cover educational expenses. In these situations, private student loans may provide you with another way to pay for college.

If you do need to take out private student loans, Sallie Mae is a lender worth considering. It offers loans for a variety of needs, including undergrad, MBA school, medical school, dental school and law school. Its loans also feature 100 percent coverage, so you can find funding for all of your certified school expenses.

With that said, it’s always best to compare a few lenders before committing. All lenders evaluate income and credit score differently, so it’s possible that another lender could give you lower interest rates or more favorable terms.

The bottom line

Sallie Mae may be a good choice if you’re in the market for private student loans and other financial products. Just be sure to do your research upfront, as you should before you take out any form of financing. Comparing multiple offers always gives you the best chance of saving money.

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Tips to do some fall cleaning on your finances



Wealth manager, Harry Abrahamsen, has five simple ways to stay on top of the big financial picture.

PORTLAND, Maine — Keeping track of our financial stability is something we can all do, whether we have IRAs or 401ks or just a checking account. Harry J. Abrahamsen is the Founder of Abrahamsen Financial Group. He works with clients to create and grow their own wealth. Abrahamsen shares five financial tips, starting with knowing what you have. 

1. Analyze Your Finances Quarterly or Biannually

You want to make sure that your long-term strategy is congruent with your short-term strategy. If the short-term is not working out, you may need to adjust what you are doing to make sure your outcome produces the desired results you are looking to accomplish. It is just like setting sail on a voyage across the Atlantic Ocean. You know where you want to go and plot your course, but there are many factors that need to be considered to actually get you across and across safely. Your finances behave the exact same way. Check your current situation and make sure you are taking into consideration all of the various wealth-eroding factors that can take you completely off course.

With interest rates very low, now might be a good time to consider refinancing student loans or mortgages, or consolidating credit card debt. However, do so only if you need to or if you can create a positive cash flow. To ensure that you are saving the most by doing so, you must look at current payments, excluding taxes and insurance costs. This way you can do an apples-to-apples comparison.

The most important things to look for when reviewing your credit report is accuracy. Make sure the reporting agencies are reporting things actuary. If it doesn’t appear to be reporting correct and accurate information, you should consult with a reputable credit repair company to help you fix the incorrect information.

4. Savings and Retirement Accounts

The most important thing to consider when reviewing your savings and retirement accounts is to make sure the strategies match your short-term and long-term investment objectives. All too often people end up making decisions one at a time, at different times in their lives, with different people, under different circumstances. Having a sound strategy in place will allow you to view your finances with a macro-economic lens vs a micro-economic view. Stay the course and adjust accordingly from a risk and tax standpoint.

RELATED: Financial lessons learned through the pandemic

A great tip for lowering utility bills or car insurance premiums: Simply ask! There may be things you are not aware of that could save you hundreds of dollars every month. You just need to call all of the companies that you do business with to find out about cost-cutting strategies. 

RELATED: Overcome your fear of finances

To learn more about Abrahamsen Financial, click here

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How to Get a Loan Even with Bad Credit



Sana pwedeng mabura ang bad credit history as quickly and easily as paying off your utility bills, ‘no? Unfortunately, it takes time. And bago mo pa maayos ang bad credit mo, more often than not, kailangan mo na namang mag-avail ng panibagong loan. 

Good thing you can still get a loan even with bad credit, kahit na medyo limited ang options. How do you get a loan if you have bad credit? Alamin sa short guide na ito. 

For more finance tips, visit Moneymax.



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